Tata Motors has joined the Centre's ₹9,585 crore vehicle replacement programme for Delhi-NCR, signing an agreement with the Ministry of Road Transport and Highways (MoRTH) to offer discounts on new trucks and buses purchased under the scheme.

Under the agreement signed on Thursday, Tata Motors will provide an 8 per cent discount on the ex-showroom price of eligible trucks and buses. For electric commercial vehicles, the discount will be capped at the level applicable to an equivalent internal combustion engine (ICE) vehicle in the same gross vehicle weight (GVW) category.

The development comes days after the Union Cabinet approved a ₹9,585 crore scheme to replace more than 2 lakh ageing trucks and buses in Delhi-NCR with cleaner BS-VI vehicles and electric vehicles. The two-year programme, to be implemented through the National Capital Region Planning Board (NCRPB), is expected to benefit around 2.07 lakh vehicle owners, including about 1.91 lakh trucks and 16,329 buses.

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The scheme targets owners of BS-IV and older commercial vehicles, encouraging them to upgrade through a combination of incentives from the Centre, state governments, vehicle manufacturers and oil marketing companies.

Apart from the discount offered by participating OEMs, the Central government will provide a 5 per cent interest subvention on vehicle loans and fixed monthly fuel vouchers for five years. Participating state governments will offer up to 100 per cent concession on motor vehicle tax for ten years and waive registration fees for eligible beneficiaries.

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Earlier this week, Ashok Leyland and Switch Mobility also signed agreements with the government to participate in the programme. According to the government, the three manufacturers together account for around half of India's truck and bus market.

The government expects the initiative to accelerate fleet modernisation in the National Capital Region while reducing vehicular emissions and improving air quality through the adoption of cleaner commercial vehicles.

Published on: Jun 18, 2026 7:58 PM IST